The County Allocation report only applies to Kentucky. Insurance companies paying license fees or taxes in designated cities must also report the same premiums to the county in which the city is located as listed in the Kentucky Local Government Premium Tax Schedule.
If a policyholder’s address and insurable line of business require an additional allocation to a county, premiums will be listed on this report and assigned to the county as well as the municipality. The sum of the premiums reported on the Allocation Detail report and the County Allocation report will foot to the total premiums reported on the Allocation Summary report.
The County Allocation report displays the premiums that were allocated to certain counties according to the rules set forth and published each year by the Kentucky Department of Insurance. The records displayed in this report are duplicates of policies in the Allocation Detail report, but the Jurisdiction Assigned To and Jurisdiction Code columns display the name and code of the county in which the address is located. This report is used to balance the totals from the Allocation Detail report to the Allocation Summary report. The sum of the totals from the Allocation Detail report and County Allocation report should equal the total on the Allocation Summary report.
This report will list counties which can also tax the same premiums which are taxable by a city. These counties are known as Code A and Code B Counties. Code A counties have tax rates higher than cities found within the county limits. These counties are able to tax city premiums, but the tax rate applied is the difference between the county and city tax rates, not the full county tax rate. These counties and associated cities may change from year to year as tax rates change on July 1st of each year. Because of this, the counties that appear on the 1st and 2nd quarter County Allocation Reports may differ from the 3rd and 4th quarter reports.
Code B Counties are counties that can assess the entire county tax rate on the same policies that a city within its county boundaries can tax. The counties are grand-fathered and have not changed since the grandfather clause was implemented.
These extra records on the County Allocation Report are created so that when Allocator data is imported into Municipal, appropriate taxable premiums will populate the county return. The columns in the County Allocation report are as follows: